EX-99.2 3 g11221exv99w2.htm EX-99.2 UNAUDITED PRO FORMA FINANCIAL STATEMENT INFO EX-99.2 UNAUDITED PRO FORMA FINANCIAL STMT. INFO
 

Exhibit 99.2
SYNOVUS FINANCIAL CORP.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME INFORMATION
For the Nine Months Ended September 30, 2007
(Unaudited)
                         
    Synovus Financial Corp.     Pro Forma     Synovus Financial Corp.  
(In thousands, except per share data)   As previously reported     Adjustments (a)     Pro Forma  
Interest income:
                       
Loans, including fees
  $ 1,540,909           $ 1,540,909  
Investment securities available for sale
    127,742             127,742  
Trading account assets
    2,890             2,890  
Mortgage loans held for sale
    8,006             8,006  
Federal funds sold and securities purchased under resale agreements
    4,062       91       4,153  
Interest earning deposits with banks
    1,008             1,008  
 
                 
Total interest income
    1,684,617       91       1,684,708  
 
                 
Interest expense:
                       
Deposits
    685,620       10,271       695,891  
Federal funds purchased and other short-term liabilities
    64,923       914       65,837  
Long-term debt
    61,741       (1,024 )     60,717  
 
                 
Total interest expense
    812,284       10,161       822,445  
 
                 
Net interest income
    872,333       (10,070 )     862,263  
Provision for losses on loans
    99,566             99,566  
 
                 
Net interest income after provision for losses on loans
    772,767       (10,070 )     762,697  
 
                 
Non-interest income:
                       
Electronic payment processing services
    710,648       (710,648 )      
Merchant acquiring services
    190,120       (190,120 )      
Other transaction processing services
    161,911       (161,911 )      
Service charges on deposit accounts
    83,157             83,157  
Fiduciary and asset management fees
    37,002       650       37,652  
Brokerage and investment banking income
    23,381             23,381  
Mortgage banking income
    20,876             20,876  
Bankcard fees
    35,370             35,370  
Securities gains, net
    891             891  
Other fee income
    29,749             29,749  
Other operating income
    55,337       3,616       58,953  
 
                 
Non-interest income before reimbursable items
    1,348,442       (1,058,413 )     290,029  
Reimbursable items
    279,727       (279,727 )      
 
                 
Total non-interest income
    1,628,169       (1,338,140 )     290,029  
 
                 
Non-interest expense:
                       
Salaries and other personnel expense
    777,842       (432,149 )     345,693  
Net occupancy and equipment expense
    284,556       (201,645 )     82,911  
Other operating expenses
    302,637       (138,356 )     164,281  
Spin-off related expenses
    6,298       (6,298 )      
Visa litigation settlement expense
    12,000             12,000  
 
                 
Non-interest expense before reimbursable items
    1,383,333       (778,448 )     604,885  
Reimbursable items
    279,727       (279,727 )      
 
                 
Total non-interest expense
    1,663,060       (1,058,175 )     604,885  
 
                 
 
                       
Minority interest in subsidiaries’ net income
    38,139       (38,139 )      
 
                       
Income from continuing operations before income taxes
    699,737       (251,896 )     447,841  
Income tax expense
    259,491       (101,443 )     158,048  
 
                 
Income from continuing operations
  $ 440,246       (150,453 )   $ 289,793  
 
                 
 
                       
Income from continuing operations per share data:
                       
Basic
  $ 1.35               0.89  
 
                   
Diluted
  $ 1.33               0.88  
 
                   
 
                       
Weighted average shares outstanding:
                       
Basic
    326,443               326,443  
Diluted
    330,001               330,001  
See introduction and accompanying notes to pro forma condensed consolidated financial statement information.

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SYNOVUS FINANCIAL CORP.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME INFORMATION
For the Year Ended December 31, 2006
(Unaudited)
                         
    Synovus Financial Corp.     Pro Forma     Synovus Financial Corp.  
(In thousands, except per share data)   As previously reported     Adjustments (b)     Pro Forma  
Interest income:
                       
Loans, including fees
  $ 1,859,914           $ 1,859,914  
Investment securities available for sale
    138,426             138,426  
Trading account assets
    2,691             2,691  
Mortgage loans held for sale
    8,638             8,638  
Federal funds sold and securities purchased under resale agreements
    6,422             6,422  
Interest earning deposits with banks
    375             375  
 
                 
Total interest income
    2,016,466             2,016,466  
 
                 
Interest expense:
                       
Deposits
    739,949       6,720       746,669  
Federal funds purchased and other short-term liabilities
    71,439       1,518       72,957  
Long-term debt
    71,204       (153 )     71,051  
 
                 
Total interest expense
    882,592       8,085       890,677  
 
                 
Net interest income
    1,133,874       (8,085 )     1,125,789  
Provision for losses on loans
    75,148             75,148  
 
                 
Net interest income after provision for losses on loans
    1,058,726       (8,085 )     1,050,641  
 
                 
Non-interest income:
                       
Electronic payment processing services
    985,868       (985,868 )      
Merchant acquiring services
    260,275       (260,275 )      
Other transaction processing services
    186,394       (186,394 )      
Service charges on deposit accounts
    112,417             112,417  
Fiduciary and asset management fees
    47,800       825       48,625  
Brokerage and investment banking income
    26,729             26,729  
Mortgage banking income
    29,255             29,255  
Bankcard fees
    44,303             44,303  
Securities losses, net
    (2,118 )           (2,118 )
Other fee income
    38,743             38,743  
Other operating income
    52,201       9,275       61,476  
 
                 
Non-interest income before reimbursable items
    1,781,867       (1,422,437 )     359,430  
Reimbursable items
    351,719       (351,719 )      
 
                 
Total non-interest income
    2,133,586       (1,774,156 )     359,430  
 
                 
Non-interest expense:
                       
Salaries and other personnel expense
    974,515       (524,142 )     450,373  
Net occupancy and equipment expense
    414,169       (313,899 )     100,270  
Other operating expenses
    430,274       (216,384 )     213,890  
 
                 
Non-interest expense before reimbursable items
    1,818,958       (1,054,425 )     764,533  
Reimbursable items
    351,719       (351,719 )      
 
                 
Total non-interest expense
    2,170,677       (1,406,144 )     764,533  
 
                 
 
Minority interest in subsidiaries’ net income
    48,102       (48,102 )      
 
Income before income taxes
    973,533       (327,995 )     645,538  
Income tax expense
    356,616       (126,181 )     230,435  
 
                 
Net income
  $ 616,917       (201,814 )   $ 415,103  
 
                 
 
                       
Net income per share data:
                       
Basic
  $ 1.92             $ 1.29  
 
                   
Diluted
  $ 1.90             $ 1.28  
 
                   
 
Weighted average shares outstanding:
                       
Basic
    321,241               321,241  
Diluted
    324,232               324,232  
See introduction and accompanying notes to pro forma condensed consolidated financial statement information.

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SYNOVUS FINANCIAL CORP.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
As of September 30, 2007
(Unaudited)
                         
    Synovus Financial Corp.     Pro Forma     Synovus Financial Corp.  
(In thousands)   As previously reported     Adjustments (c)     Pro Forma  
ASSETS
                       
Cash and due from banks
  $ 944,215       179,855     $ 1,124,070  
Interest earning deposits with banks
    4,318             4,318  
Federal funds sold and securities purchased under resale agreements
    113,654             113,654  
Trading account assets
    33,009             33,009  
Mortgage loans held for sale
    165,837             165,837  
Investment securities available for sale
    3,628,766             3,628,766  
 
                       
Loans, net of unearned income
    25,774,656             25,774,656  
Allowance for loan losses
    (356,887 )           (356,887 )
 
                 
Loans, net
    25,417,769             25,417,769  
 
                 
 
                       
Premises and equipment, net
    803,528       (276,113 )     527,415  
Contract acquisition costs and computer software, net
    351,576       (351,576 )      
Goodwill, net
    682,047       (162,909 )     519,138  
Other intangible assets, net
    49,933       (19,988 )     29,945  
Other assets
    1,381,011       (376,107 )     1,004,904  
 
                 
Total assets
  $ 33,575,663       (1,006,838 )   $ 32,568,825  
 
                 
 
                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                       
Liabilities:
                       
Deposits:
                       
Non-interest bearing retail and commercial deposits
  $ 3,564,105           $ 3,564,105  
Interest bearing retail and commercial deposits
    17,887,961       320,936       18,208,897  
 
                 
Total retail and commercial deposits
    21,452,066       320,936       21,773,002  
Brokered time deposits
    2,872,978             2,872,978  
 
                 
Total deposits
    24,325,044       320,936       24,645,980  
Federal funds purchased and other short-term liabilities
    2,568,759             2,568,759  
Long-term debt
    1,760,162       (79,684 )     1,680,478  
Other liabilities
    592,771       (307,766 )     285,005  
 
                 
Total liabilities
    29,246,736       (66,514 )     29,180,222  
 
                 
 
                       
Minority interest in consolidated subsidiaries
    274,571       (274,571 )      
 
                       
Shareholders’ equity
    4,054,356       (665,753 )     3,388,603  
 
                 
Total liabilities and shareholders’ equity
  $ 33,575,663       (1,006,838 )   $ 32,568,825  
 
                 
See introduction and accompanying notes to pro forma condensed consolidated financial statement information.

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NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENT INFORMATION
(a)   Adjustments to remove the results of operations of Total System Services, Inc. (“TSYS”) for the nine month period ended September 30, 2007, including the impact of intercompany eliminations and certain reclassifications. Included in the pro forma adjustments is the removal of $6,298,000 of spin-off related costs.
(b)   Adjustments to remove the results of operations of TSYS for the year-ended December 31, 2006, including the impact of intercompany eliminations and certain reclassifications.
(c)   Adjustments to remove the balance sheet of TSYS as of December 31, 2006, including the impact of intercompany eliminations and certain reclassifications. Included in the pro forma adjustments is recognition of a $484 million cash dividend from TSYS, which represents Synovus’ share of the $600 million special dividend, paid by TSYS immediately before the spin-off transaction.
 
    Also included in the pro forma adjustments is the removal of $20.5 million of goodwill and $6 million of other intangible assets previously recorded by Synovus in conjunction with prior purchases of TSYS common stock.

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